Sydney schoolgirl accused of funding terrorism denied bail

A 16-YEAR-OLD girl charged with sending thousands of dollars to the Islamic State group has been denied bail in a Sydney children's court.

The Year 12 student, who cannot be identified, appeared in Parramatta Children's Court, after she and a suspected member of a Sydney terrorist cell, 20-year-old Milad Atai, were charged with financing terrorism.

The court was told the pair was arrested shortly after meeting at Guildford Park on Tuesday morning, where Atai allegedly handed her $5000 in cash.

Prosecutors claim the girl was planning to ask an older woman to send the money to her relative, alleged terrorist Ahmed Merhi.

On Wednesday, the court heard the girl told Atai she had previously sent money to Syria via Lebanon and knew it would go to Islamic State.